Vanguard To Enter Junk Bond ETF Race: Low-Cost VCHY Set To Challenge HYG, JNK Dominance

Vanguard plans to launch its US High-Yield Corporate Bond Index ETF (VCHY) in June, aiming to compete with established funds like iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and SPDR Bloomberg High Yield Bond ETF (JNK). Analysts anticipate VCHY will have a lower fee structure, potentially undercutting competitors that charge 0.49% and 0.40%, respectively. This launch aligns with Vanguard's strategy to enhance its fixed-income offerings, following a strong performance in the high-yield bond market, which saw returns of 8.62% in 2025 and notable gains in previous years.